Romania’s new offshore law threatens Black Sea projects

Provisions for a profit windfall tax in the proposed legislation have prompted IOCs to threaten to leave the countryProvisions for a profit windfall tax in the proposed legislation have prompted IOCs to threaten to leave the country.

Romania is poised to pass new legislation that IOCs say may snuff out the country’s nascent offshore sector.

The Romanian parliament approved the new offshore law on 9 July, adding a progressive windfall tax on Black Sea oil and gas production to the existing royalty regime.

The proposed windfall tax would be applied on profits generated if local gas prices are higher than RON 45/MWh ($3.31/MMBtu) and would vary from 15-50% depending on the price. If prices fall below RON 45/MWh, no additional tax...

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